Law and regulation

Audit / FTSE 350 reporting improves ahead of new governance code

Next year’s introduction of a new corporate governance code is already having an impact on reporting in the FTSE 350 ahead of the January 2019 deadline, according to analysis by EY which found indications that companies are already starting to provide information in new areas like company culture

Audit / Miscellaneous reporting regulations: directors’ duties and pay

Corporate governance rules are being tightened up with the introduction of the Companies (Miscellaneous Reporting) Regulations 2018 from January 2019. David Duvall FCA explains the new responsibilities for directors and executive pay reporting requirements

Audit / Mandatory audit firm rotation fails to deliver lower costs

Mandatory audit firm rotation (MAFR) has forced up audit costs for the FTSE 100, with fees increasing 10% in the last 12 months, but is delivering very mixed results in terms of reducing Big Four dominance and increasing competition, according to a report from Source Global Research

Audit / Government plans overhaul of dividend framework

The government is considering whether to reinforce the rules on dividend payouts and distributions to give stronger reassurances to shareholders and prevent dividends from undermining the viability of a company, reports James Bunney

Audit / Revised Corporate Governance Code: what you need to know

The 2018 Corporate Governance Code includes a raft of changes, including a provision to encourage greater board engagement and the nine-year rule for directors on the company board, but will it be able to prevent corporate failures? Amy Austin, reporter at Accountancy, investigates

Audit / FRC fines Grant Thornton £4m for independence failings

Grant Thornton has been fined £4m and reprimanded for misconduct by the Financial Reporting Council (FRC) in relation to a lack of independence in the audits of Nichols plc and the University of Salford, with additional sanctions for a former senior partner and three former senior statutory auditors

Audit / Insolvency Service ramping up Carillion investigation

The Insolvency Service has announced that the liquidation trading period for Carillion has now ended, and that it is moving forward in its investigation into the reasons for the collapsed outsourcer’s insolvency

Accounting / LLP accounting framework up for review

The Consultative Committee of Accountancy Bodies (CCAB) is consulting on an updated draft of the statement of recommended practice – accounting by limited liability partnerships (LLPs SORP), which is designed to ensure LLPs continue to present financial statements that are comparable with those of other entities

Audit / UK audit firms under fire

In a hard-hitting editorial, the Financial Times today branded the UK’s audit industry ‘a cancer in the body corporate’ and called for change

Audit / Audit updates: August 2018

In our monthly roundup of developments in audit and governance, EY picks up £1.6m SIG audit from Deloitte, top director Melanie Hind leaves UK audit regulator, FRC launches shorter sharper governance code for UK PLCs, MPs pressure FRC over BHS audit findings

Audit / FRC calls for improvements in auditing pension balances

After reviewing the audits of 125 entities with pension schemes, the FRC has concluded that significant improvements are needed

Audit / FRC publishes revised corporate governance code

The Financial Reporting Council (FRC) has published its revised UK corporate governance code, which it says places emphasis on businesses building trust, with greater board engagement with workforce views and an end to ‘formulaic calculations of performance-related pay’ for executives

Audit / MPs pressure FRC over BHS findings

MPs are demanding the Financial Reporting Council (FRC) provides more details of its investigation into PwC’s auditing of BHS as a going concern prior to the retailer’s sale for £1, now that its previous owner, Taveta Group, has lost a court appeal to prevent full publication of the regulator’s findings

Audit / Bannerman paragraph clarified: what it means for auditors

Following uncertainty about use of the Bannerman clause, ICAEW has issued revised guidance, Technical Release 01/03AAF The audit report and auditors’ duty of care to third parties. Helen MacNeill ACA, senior technical writer at Croner-i, explains the implications for auditors

Audit / Audit updates: July 2018

In our monthly roundup of developments in audit and governance, PwC fined £10m over BHS audit failures, Bannerman third party audit disclaimer guidance updated, KPMG and partner fined £4.5m over Quindell audit failure